LONDON: Oil prices tumbled on Monday, striking fresh 2.5-month low points on a lingering global supply glut.
US benchmark West Texas Intermediate (WTI) slumped to $43.08 a barrel and Brent North Sea crude hit $44.65 the lowest levels since May 10, before firming slightly.
“Crude oil markets have been under pressure as oil supplies have started growing with the resumption of output from the capacity lost due to wildfires in the Canadian oil sands,” said EY energy analyst Sanjeev Gupta.
Both the main traded oil contracts had already sunk on Friday after a report showed the number of active US installations rose for a fourth straight week.
Gupta said reports of increased production from Iraq have further weighed on prices.
Courtesy : Dawn News